Crypto Fraud Uncovered in Indian State of Odisha, Culprits Apprehended
In a recent development, authorities in the Indian state of Odisha have exposed a group involved in conducting fake cryptocurrency transactions. At a time when the Indian government is intensifying its scrutiny over the crypto sector, this incident highlights the growing menace of scams in the country.
Reports suggest that the police in the city of Bolangir, Odisha apprehended the main suspect of a local gang involved in the scam. The gang members allegedly utilized fake cryptocurrency transactions to deceive and swindle people. To entice unsuspecting victims, they even promised extravagant trips to Thailand and Dubai. Their modus operandi included using various websites and apps as tools for their fraudulent activities.
The gang managed to accumulate over $1.5 million from unsuspecting investors through their scheme. In an attempt to cover their tracks, they also established a multi-level marketing organization by the name of “Pegmatite Sustainable Solutions Private Limited.”
Notably, the gang had earlier introduced a digital currency in July 2022, claiming it had a value of $0.0012. Subsequently, they manipulated its perceived value to $0.010, encouraging people to invest in their coins with false promises of quick gains. The police have also confiscated important documents and seized a high-end vehicle from the custody of the accused.
This incident sheds light on the increasing prevalence of crypto scams in India. Local media surveys indicate that Indian investors are particularly vulnerable to cryptocurrency scammers, often falling victim to scams on platforms like Telegram. Factors such as a lack of regulations, inexperienced investors, and limited knowledge about digital assets contribute to the ease with which scammers can deceive the Indian populace.
To tackle this issue head-on, the Indian government has been implementing stricter regulations and laws to combat crypto scams. Recently, the Financial Intelligence Unit (FIU) issued show cause notices to nine offshore cryptocurrency exchanges, accusing them of operating illegally and violating anti-money laundering laws. Moreover, the government has now included digital assets in its watch list, extending anti-money laundering provisions to the Indian cryptocurrency market.
As India continues its battle against fraudulent activities in the crypto space, incidents like this serve as a reminder for investors to exercise caution and conduct thorough research before engaging in any cryptocurrency transactions.